Members of the European People’s Party Group in the European Committee of the Regions (EPP-CoR) held a strategic debate on the vital role of cities and regions in shaping and implementing the European Union’s Affordable Housing Plan. As the housing crisis escalates across Europe, EPP-CoR members reaffirmed that solutions must be grounded in local realities and backed by strong European support.
The opinion recalls that housing policy is a competence shared between the national and local/regional level, and not an EU competence, and emphasises that the European Affordable Housing Plan must respect the subsidiarity principle and ensure the active involvement of the local and regional levels.
Markus Wallner, Governor of Vorarlberg, emphasized the critical importance of preserving regional and municipal competencies in housing. “Housing rightly falls under the responsibility of regions and municipalities. Local authorities know best the needs and structures on the ground. Therefore, regional building competencies must be preserved,” he stated. “I see the EU's role primarily in regulating real estate speculation, promoting innovation in the construction industry, and adapting state aid law to strengthen public housing providers.”
María Isabel Blanco Llamas, Regional Minister of Public Works, Housing and Transport of Cantabria, warned that the housing crisis is no longer confined to major urban centres: “The crisis is becoming increasingly severe and affects not only large cities but also smaller towns and rural communities. It is essential to make housing available to people.” “We need high-quality, affordable homes. To achieve this, we must mobilise land, simplify and adapt regulations to local realities, and ensure that funding reaches all parts of society. Support from the European Union is vital.”
Ivan Zagar, Mayor of the Municipality of Slovenska Bistrica, said that "We need a European Affordable Housing Plan that empowers local and regional authorities, respects subsidiarity, and boosts investment in social, cooperative, and public housing. Tax incentives for housing rehabilitation, especially in rural and high-pressure urban areas, can unlock thousands of units. But the real solution lies in building new homes and repurposing old ones. Local and regional authorities need access to land, infrastructure, streamlined regulations and EU funding to make that happen. To tackle the housing crisis effectively, we must urgently address the labour shortage in the construction sector. Every year, homes go unbuilt simply due to a lack of skilled workers. Only then we can drive down prices, and meet demand for decent, affordable houses. "
Mirjam Sterk, Regional Minister of Utrecht, outlined a forward-looking vision for Europe’s construction and housing policies. “The EU needs to facilitate necessary innovations in the construction sector—digitalization, prefabrication, and sustainability,” she said. She highlighted Utrecht’s ‘Groen groeit mee’ (Growing Greenspace) initiative as a best practice integrating nature, water, landscape, and housing development.
Sterk also stressed the urgency of building a skilled workforce and decarbonizing the construction industry: “We must invest in re-education, digital tools, and clear whole-life carbon indicators. A roadmap is needed to guide investments and emissions reductions in the sector.” She concluded with a call for ambition: “With bold policies and European cooperation, we can build affordable, sustainable, and future-proof housing for all.”
The opinion insists that while local and regional authorities (LRAs) must play a critical role in co-designing, implementing and tailoring EU and national policies to local needs, the EU must support LRAs to make the right to affordable and decent housing a reality. This includes providing a toolbox of measures and best practices that have proven effective in certain cases and can serve as inspiration for LRAs.